Good morning, Lisbon. It's Friday, March 27, and we're looking at 18°C with sun and light clouds off the Atlantic.
If you opened yesterday's email, you'll might have noticed I was manifesting the weekend a little too hard. Thanks for rolling with my time-travelling "Happy Friday." It's officially here now and the clocks are about to jump forward. Let's get into it.
🌬️ AIR QUALITY: 28 (Good). Light breeze keeping things fresh ahead of the weekend.
🗞️ TOP STORY
DIESEL JUST BROKE €2. THE PAIN ISN'T STOPPING.
If you've filled up your car this week, you already know. Diesel hit €2.09 per litre on Monday. Petrol climbed to €1.95. These are the highest prices Portugal has seen since the post-Ukraine spikes of early 2022, and the trajectory is still pointing up.
The cause is the Middle East. Since the escalation between the US, Israel, and Iran at the end of February, Brent crude has surged from around $60 per barrel to over $85. Attacks on gas infrastructure in Qatar have pushed European natural gas prices up 85% from pre-conflict levels. Portugal imports nearly all its fossil fuels, so the global price contagion hits here fast and hard.
The government is scrambling. On March 23, the Finance Ministry announced a second round of emergency cuts to the ISP fuel tax: 2.6 cents per litre off diesel, 1.4 cents off petrol. Combined with the earlier cut, that's a total saving of 9.4 cents per litre on diesel and 5.1 cents on petrol compared to early March prices. Helpful, but nowhere near enough to offset the increases.
More significantly, Portugal is now openly discussing declaring a formal energy crisis. The Environment Minister confirmed that gas market conditions have "very significantly" worsened, while the government approved a framework allowing it to cap energy prices if retail electricity exceeds 180 euros per megawatt hour. The Presidency Minister stressed they're "still a long way" from that threshold, but the fact that the mechanism is now in place tells you how seriously they're taking it.
The good news for electricity bills: around 80% of Portugal's power comes from renewables, so the grid is relatively insulated. The bad news is everything else. Diesel powers logistics, and logistics powers your grocery bill. Hauliers are already warning that delivery surcharges are coming. If you've noticed your Continente shop getting more expensive, this is part of why.
For expats who drive: fill up before Monday mornings, when weekly price adjustments kick in. The DGEG recalculates pump prices every Friday. For everyone else: this is a story that touches rent (landlords pass costs through), food, transport, and ultimately the cost of living that drew many of us here in the first place.
Bottom line: Portugal's cost-of-living advantage over the rest of Western Europe is real, but it's being squeezed from a direction nobody planned for.
⚡ QUICK HITS
Clocks go forward Sunday. At 1am on Sunday, March 29, clocks in mainland Portugal and Madeira spring forward to 2am. In the Azores, midnight becomes 1am. Your phone handles it; your oven and your body do not. For remote workers: the UK switches the same day, so no time gap there. But if you work with US teams, note that Portugal is now only four hours ahead of the East Coast (the US already changed on March 8). The EU has been trying to scrap seasonal clock changes since 2018. Still deadlocked.
Portugal bets big on data centres. The Council of Ministers approved a National Data Centre Plan, positioning Portugal as a European hub for AI and cloud infrastructure. Simplified licensing, pre-approved zones, and AICEP as a single point of contact for investors. Each additional gigawatt could attract up to eight billion euros. Sines is the strategic centrepiece, with over twenty billion euros in planned investment across energy and tech.
Northern hotels nearly full for Easter. Booking rates across Northern Portugal are running at 80% for the Easter break. If you're planning a Douro or Minho trip, act now.
IRS deadline reminder. The tax filing window for 2025 income is open and the deadline is approaching. Log into Portal das Financas this weekend if you haven't already. First-time filers in Portugal: the categories, deductions, and deadlines are different from what you're used to. Don't assume.
🍽️ SPOT OF THE DAY
If you're heading to the Coffee Market this weekend, warm up your palate at one of the best specialty coffee spots in the city. The Folks was just named number 88 in the World's 100 Best Coffee Shops for 2026, for the second year running, and the Santos location on Rua de Sao Bento is the one to know.
Founded in Lisbon in 2022, The Folks started as a single cafe in Baixa-Chiado and has quietly expanded to five locations. What sets it apart from the city's many brunch spots is the coffee programme: they roast their own beans, rotate roasters for filter and espresso, and the baristas actually know what they're doing. The tiramisu latte and espresso tonic are worth ordering for the novelty, but a straight flat white tells you everything you need to know.
The brunch menu goes beyond the usual. Turkish eggs with whipped yoghurt, Ukrainian syrnyky (cottage cheese pancakes), and a solid eggs Benedict with a mushroom or salmon option. The portions are generous and the presentation is considered without being try-hard.
Santos is the location with the most neighbourhood feel: soft cushions, river-adjacent light, and a crowd that skews more local than tourist. The Alfama terrace under the old tree near the Se is a close second for weekend mornings.
Rua de Sao Bento 51, Santos. Open daily for breakfast and brunch. Cards accepted. Expect to pay 12-18 euros for brunch with coffee. No reservations, but the wait is rarely more than 10-15 minutes.
Insider tip: If you're into home brewing, they sell wholesale beans and equipment on-site. Worth a browse while you wait.
📅 WHAT'S ON THIS WEEKEND AND BEYOND
Coffee Market (Fri-Sun, March 27-29) 8 Marvila. 40 brands, tastings, workshops, competitions. From eight euros. The big event of Lisbon Coffee Week.
Harry Potter in Concert (Sat March 28) Sagres Campo Pequeno, 8:30pm, from 25 euros. Full film, live orchestra. Family-friendly.
Portugal vs Mexico (Sat March 28) Estadio Banorte (formerly Azteca), Mexico City. Friendly. Ronaldo out with hamstring injury. Kick-off 1:30am Lisbon time. Night owls only.
Clocks Forward (Sun March 29) 1am becomes 2am. Mainland and Madeira.
Hans Zimmer Live (Tue March 31) MEO Arena. Cinematic scores performed live. One of the biggest shows of the spring.
Portugal vs USA (Tue April 1) Mercedes-Benz Stadium, Atlanta. Friendly. Last World Cup warm-up before the summer. Still no Ronaldo.
📜 ON THIS DAY
March 27, 1513. A Spanish expedition led by Juan Ponce de Leon spotted a coastline they'd never seen before, somewhere along what is now Florida's east coast. He named it La Florida, "land of flowers," possibly because it was Easter season, or possibly because the coastline was blooming. It was the first documented European sighting of what would become the continental United States. Ponce de Leon had sailed from Puerto Rico searching for new lands to govern (the fountain of youth story came later and is almost certainly myth). He wouldn't actually go ashore until April 2. Five centuries on, the migration runs in reverse: record numbers of Americans are now leaving Florida and the rest of the US for Portugal, drawn by the same thing that drew Europeans west: the promise of something better on the other side of the Atlantic.
See you tomorrow morning.
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